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This is a glitch, it isn't new, and there is no announced resolution or date.  Lots of people are here advising that you should just not enter the 1099-Q, but I think that is risky.  The IRS has a copy of the 1099-Q, and they have algorithms that could (probably would) detect when you don't include it.     Scenarios vary for how big of an issue this is, depending on whether the beneficiary is a dependent or not.  If a 1099-Q is issued with you as the recipient, and the beneficiary is not your dependent, TurboTax (and virtually all tax software) will err on the side of caution, and charge full tax, even if all of the money was spent on qualified educational expenses.  And with the current glitch in TurboTax, you may also be assessed a 10% penalty if it thinks the money wasn't spent on qualified expenses, like room and board.   The simple workaround that I use for all these issues, which, unfortunately, only works in Desktop: I enter the 1099-Q.  TT doesn't let me enter necessary details and costs for educational expenses, so I am stuck with tax and penalty.  Then I go to FORMS mode (button on top-right of TT screen).  I then navigate to the 1099-Q form.  On the top menu bar, I click edit and select "override." I go to line 2d on the 1099-Q form and enter the entire amount spent on qualified costs.  It will be red because of the override, but it will stop reflecting tax and penalties. The refund amount on the top of the screen updates to reflect that I no longer am charged the tax and penalty. Now everything balances.  The 1099-Q has been entered, and I don't have to pay unnecessary taxes and penalties.  This solution comes with the disclaimer that once you do an override on a form, TurboTax is no longer responsible for what was reported on the form - you are.  In my case, I think that carries less risk than omitting the form and inviting the IRS into my life.      

IRS interview to help determine who can be claimed: https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent   To claim a grandchild as your dependent When you enter the child’s name in My Info, you will be asked “What’s your relationship to  [child’s name]?”              Choose “another person”             a drop down menu will appear that lets you choose grandchild     If your dependent was a full-time college student, make sure you were careful on the MY INFO screen for “Uncommon situations” and that you indicated there that they were a student.  

If your W-2 lacks Box 14, you may still claim the 2025 tax-free overtime deduction in TurboTax. Your employer may have reported your qualified overtime on some other document.    After entering your W-2, select Overtime at the screen Let's check for other situations.    You will be prompted to manually enter your overtime premium, based on your year-end pay stub.     Here is an example of qualified overtime.  If the employee’s regular rate of pay is $20 per hour and the employee worked one hour of overtime, the employee’s overtime pay would be $30 ($20 x 1.5).  The employee’s qualified overtime would be $10 ($30 overtime pay less $20 regular pay).    See also this TurboTax Help.    

latest estimate is 2/13.   Per Intuit - "There were some changes in the Special Depreciation Allowance by the OBBB that have not been completely coded in yet."   https://ttlc.intuit.com/community/taxes/discussion/rental-property-depreciation-not-available-as-of-2-1-2025/00/3750305   https://ttlc.intuit.com/community/taxes/discussion/will-depreciation-and-amortization-be-ready-soon/00/3740421

You received an email that we cannot see that tells you why your tax return was rejected.   Some rejected returns can be fixed and re-filed.  Some have “un-fixable” reasons for the rejection and have to be mailed instead.    What is the rejection code or rejection message?     If it was rejected for AGI—-your 2024 AGI might not be in the IRS system if you filed late.   Try using zero instead.   If filing with zero is rejected then file again but select the option that you did not file last year.  The IRS does not see that question and it will allow you to e-file with no AGI question.     https://ttlc.intuit.com/community/agi/help/where-do-i-correct-my-agi-in-turbotax-online/00/26311   If that does not work and you still cannot e-file, then print, sign, and mail your tax return.

You cannot change or add anything on the return that you just e-filed, nor can you stop it.  It is too late, just like when you put an envelope in a US mailbox on the corner.  The IRS does not allow you to take it back.   If you left out a W-2, a 1099G, or a dependent, or a 1099 etc…DO NOT change your return while it is “pending.”  The changes will go nowhere.   Now you have to wait until the IRS either rejects or accepts your return.  If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return.     If the IRS accepts your return, however, then you have to wait longer until it has been fully processed and you have received your refund.  THEN you can prepare an amended tax return and e-file or mail  it in. You have to be able to work from that return exactly the way it was when it was e-filed originally.  You will need to use a form called a 1040X.     Meanwhile, DO NOT go in and start changing anything on your return in the system, or you will make a mess for yourself.  Sit tight and wait until you see what the IRS does with the return you just e-filed   The Form 1040X you need becomes available in late February,  But wait until your return has been processed.